Product vs Production Concept: Key Differences & Business Impact
Product is the tangible item or service you sell; Production Concept is the belief that customers favor goods that are cheap and widely available, so firms should push for maximum efficiency and mass distribution.
Start-ups pitch their “product” yet chase the Production Concept by obsessing over low cost and high volume—until a rival wins with better design. Veterans know the difference: one is what you ship, the other is why you ship a million of them.
Key Differences
Product centers on features, quality, and brand; Production Concept centers on cost, scale, and availability. The first asks “Is it good?”; the second asks “Can we make millions cheaply?” Strategy, KPIs, and even team roles diverge sharply.
Which One Should You Choose?
Choose Product when differentiation commands premium pricing. Choose Production Concept when price wars dominate and margins hinge on volume. Most firms blend both, but the dominant lens shapes R&D budgets, supply-chain contracts, and marketing messages.
Can a company succeed with only the Production Concept?
Yes, if the market prizes low price and undifferentiated goods—think generic batteries or bottled water.
How do KPIs differ between the two?
Product tracks NPS and margin per unit; Production Concept tracks unit cost and throughput.
Does digital business change the trade-off?
Digital goods lower marginal cost, so even a “product” strategy can scale, blurring—but not erasing—the distinction.